A slightly belated welcome to the new 2019/20 season at Broadwater – I hope everyone enjoyed their summer holidays.
After a focused financial year, controlling costs and growing revenues we actually ended up better than forecasted in the last Treasurer’s Letter back in May: with an operating profit of £3,752. However, after depreciation, loan repayments and capital expenditure we finished with an overall loss of £16,203.
The following updates are the key highlights of the full financial year. Our internal accounts have now been shared with our accountants RSM who will validate them and prepare our statutory accounts in advance of the AGM in December.
On a separate point, I would like to officially welcome Richard Ayres as the new Minis Treasurer. Richard has been a stalwart in the Minis for managing various year groups and also helping organise festivals – so we are grateful that he has embraced this newly defined role within the Minis and will ensure that the section is delivering maximum value for money for its members, players, the club and its CASC community status.
Rugby: As mentioned in my last letter, membership across all sections is slightly down – delivering £16k lower membership income than budgeted. Hopefully the World Cup will peak interest in rugby again, as there is more competition for extra-curricular/ weekend activities.
I would also ask that all members pay their membership fees as soon as possible. This gives the club a much stronger financial standing for the year ahead and enables us to plan our cash flow better – especially leading into December when loan repayments/interest is due to loan note holders.
Facilities, Management & Administration: Costs have been well managed this last year and no major work required following the previous year’s refurbishment. Fortunately we were also able to claim a significant refund from HMRC due to historical gift-aid claims, as we now benefit from our Chairman being a UK registered tax payer.
Shop: The club shop continues to be popular on weekends and key events; members benefitting from the great selection of sport and casual wear. However, overall sales were below our original ambitious target. We will continue to evolve the proposition to ensure it meets members’ needs but also brings much needed profit to the club.
Commercial: We continue to benefit from new and long standing sponsors of the club; including OTC, Keltbray, Whiteley Clinics, Dentons Wealth, Starline Power, Africa Collection and numerous others – but are still endeavouring to grow the commercial revenue for the club. For various reasons, we ended the year well below what was originally budgeted – and we continue to look for new revenue streams.
In that regards, we are always looking for additional volunteers to join the Commercial Committee led by our Commercial Director Roy O’Brien. This committee meets once a month and is a forum for new initiatives to increase revenues and commercial support/engagement in the club. Please get in touch if interested.
Catering and Events: The new approach to internal and external catering and events is making a huge positive impact to the club’s finances. We are being more focused on the events we book, and ensuring the offering, quality and pricing is delivering the right result for all involved. In the end this section of the club brought in £44k additional profit from what was originally budgeted. This is a fantastic effort and goes to show the value of the great team and facilities that we can all enjoy. There are even bigger plans ahead for this season.
Masquerade Ball: Although ticket sales were below what was expected, this was a great club evening enjoyed by all that attended and showed the potential for an ongoing annual fundraising event that brings all club sections together. Roy and Sally did a sterling effort on the night rallying the troops (and their wallets) and we ended with a welcome profit of over £2k.
Forecast for finance year ahead: With our bookkeeper Liz’s help we were able to gather the various budgetary inputs through the summer and are well advanced with the financial planning for the season ahead. We have completed all the budgets for the nine different sections – but are currently carrying out a cost review to ensure we deliver the club the much-needed profitability. These finalised numbers will be shared in next Treasurer’s Letter.
Please feel free to contact me with any queries.
Nick / [email protected]
June 2019 (year-end) Balance Sheet and Cash Position:
|Fixed Assets (YTD)||£723,183||Fixed Assets (YTD)||£3,710|
|Current Assets (YTD)||£87,590||Current Assets (YTD)||£46,097|
|Current Liabilities (YTD)||£49,911||Current Liabilities (YTD)||£37,868|
|Long Term Loans (2019 & RFU)||£260,920|
June 2019 Profit & Loss YTD summaries: